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Green Accounting and Firm Value

Author

Listed:
  • Nico Alexander

    (Trisakti School of Management, Indonesia Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

"Objective - The environment is one of the more interesting issues to discuss, especially if it relates to companies' accounting issues. This study was conducted to determine the effect of green accounting implementation on firm value. Methodology/Technique - Firm value is measured using Tobins-Q, and green accounting is measured by ratings based on PROPER. Multiple regression analysis was used, and 35 manufacturing companies were sampled in this study. Findings - The results of this study show that green accounting can increase firm value. Companies that apply green accounting have a higher firm value because information about environmental costs is additional information for stakeholders when making decisions. If the company does not incur environmental costs, it is considered bad for investment. Novelty - Green accounting is still new, so this study was conducted to provide an overview of green accounting and firm value. Companies implementing green accounting will increase their firm value and help preserve the environment. It is hoped that Indonesian accounting organizations will develop standards regarding green accounting. Type of Paper - Empirical."

Suggested Citation

  • Nico Alexander, 2023. "Green Accounting and Firm Value ," GATR Journals afr223, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:afr223
    DOI: https://doi.org/10.35609/afr.2023.7.4(2)
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    References listed on IDEAS

    as
    1. Thomas Berry & Joan Junkus, 2013. "Socially Responsible Investing: An Investor Perspective," Journal of Business Ethics, Springer, vol. 112(4), pages 707-720, February.
    2. repec:dau:papers:123456789/7349 is not listed on IDEAS
    3. Gunther Capelle-Blancard & S. Monjon, 2012. "Trends in the literature on socially responsible investment: Looking for the keys under the lamppost," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00733402, HAL.
    4. Kaveh Asiaei & Nick Bontis & Raziye Alizadeh & Mehdi Yaghoubi, 2022. "Green intellectual capital and environmental management accounting: Natural resource orchestration in favor of environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 76-93, January.
    5. Dian Agustia & Tjiptohadi Sawarjuwono & Wiwiek Dianawati, 2019. "The Mediating Effect of Environmental Management Accounting on Green Innovation - Firm Value Relationship," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 299-306.
    6. Candy Chamorro Gonzalez & Ketty Herrera Mendoza, 2021. "Green accounting in Colombia: a case study of the mining sector," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 6453-6465, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Green Accounting; Firm Value; Green Investment; PROPER; Indonesia.;
    All these keywords.

    JEL classification:

    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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